It says the debt crisis in the eurozone remains the most obvious threat to the global outlook and unemployment is likely to remain "elevated" in many parts of the world.

Despite the gloomy predictions, Mr Swan says the Government remains on track to deliver a surplus this financial year.

"The Australian economy remains the standout performer of the developed world, with solid growth, low unemployment, contained inflation, strong public finances and an enormous pipeline of investment in resources which is boosting our economic capacity and export volumes," Mr Swan said in a statement.

The Treasurer is due to deliver a budget update before the end of the year, which is expected to include significant spending cuts given the continuing decline in company tax receipts.

Moscow's words and actions — including the alleged poisoning of a former spy — are not the results of random aggression but rather fall into distinct patterns that can help us anticipate Russia's next moves under Vladimir Putin.